Sixty green groups have combined to condemn the Government for deciding to cut greenhouse gases by 5 per cent by 2020.

The 60 groups say the 5 per cent target is weak, but industry groups including the food and grocery council and the minerals council say it goes too far.

Don Henry from the Australian Conservation Foundation says if every nation took Australia's approach, there would be no hope for effective change.

"Australia's not going to be viewed as credible. On one hand, we're saying, 'Yep, we need an ambitious, international agreement, we need an international agreement that will avoid dangerous climate change'," he said.

"But on the other hand we're fudging the figures and we're putting a low figure on the table that doesn't add up, that will encourage every other country to do the same.

"The Prime Minister has said, 'We've got to bat to try to avoid dangerous climate change.

"But he's walking out into the middle of a cricket pitch without his bat. We're going to be clean bowled as a nation because our targets are too weak."

The Northern Territory Environment Centre says the 5 per cent carbon reduction target is too weak and could have a devastating impact on the Territory.

Acting co-ordinator Emma King says if a 5 per cent target was adopted worldwide, attractions such as Kakadu National Park would be destroyed.

She says globally a target of 25 per cent is the minimum to avoid the more serious consequences of climate change.

"It's the sort of target that will mean the loss of the Kakadu wetlands and other coastal areas which are very important culturally," she said.

"And for food supply for Indigenous people it'll probably mean the increase in severe weather events. That's one of the predictions that's being made."

The Opposition has not decided yet if it will back the scheme but Coalition's spokesman Andrew Robb has told Sky News they have ordered their own study.

"We must look at this in a very considered and objective fashion and not rush into it," he said.

Mr Rudd says he is suspicious.

"Malcolm Turnbull and the Liberals are now looking for excuses not to act again," he said.

Mr Rudd has announced that coal-fired power stations will get $4 billion in compensation but the Australian Coal Association's Ralph Hillman says there is not enough assistance for trade-reliant industries.

He says black coal exporters will lose business to nations that do not have the burden of carbon pricing.

"Competitor mines in countries such as Columbia, South Africa, Mongolia, Indonesia - what's going to happen is they're going to take our market share as our costs rise under the CPRS with no benefit to global environment because of carbon leakage," he said.

"Investment will simply go to those countries and slow down Australian coal mining."

Compensation

The Prime Minister has announced the Government will spend $6 billion to compensate low income earners and pensioners for the costs imposed by a carbon reduction scheme.

Mr Rudd says the pension will rise by 2.5 per cent.

"Around 90 per cent of low income households or 2.9 million households overall will receive assistance equal to 120 per cent or more of their cost of living increase," he said.

Lynne Hatfield-Dodds form the Council of Social Service says she is pleased the Government will fully compensate low-income earners for increased costs.

"On first reading of the household assistance package, it appears that the Government has in fact met that commitment, so we're really pleased to see that.

"We were disappointed, however, to see no retro-fitting measures to assist low-income households move to an energy efficiency state."